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Segment Reporting | 3 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company reports its business segments using the “management approach” model for segment reporting. This means that we determine our reportable business segments based on the way the chief operating decision-maker (“CODM”) analyzes business segments within the Company for making operating decisions and assessing financial performance. We report our financial results in the following three segments: (i) Networking, (ii) Materials, and (iii) Lasers. Our CODM receives and reviews financial information based on these three segments. During the first quarter of fiscal 2025 as a result of a new CEO joining the Company in the fourth quarter of fiscal 2024, our CODM implemented changes in the measure he uses to allocate resources and assess performance. Our CODM now evaluates each segment’s performance and allocates resources based on segment revenue and segment profit, instead of operating income, as our CODM believes segment profit is a more comprehensive profitability measure for each operating segment. Segment profit includes operating expenses directly managed by operating segments, including research and development, direct sales, marketing and administrative expenses. Segment profit does not include share-based compensation, acquisition or integration related costs, amortization and impairment of acquisition-related intangible assets, restructuring charges, and certain other charges. Additionally, effective the first quarter of fiscal 2025, we no longer allocate Corporate strategic research and development, strategic marketing and sales expenses and shared general and administrative expenses, as these expenses are not directly attributable to our operating segments. The segments are managed separately due to the market, production requirements and facilities unique to each segment. The accounting policies are consistent across each segment. Effective the first quarter of fiscal 2025, we no longer allocate corporate assets to the segments. Comparative prior period segment information has been recast to conform to the new segment profitability measure. The change in our operating segment measure had no impact on our previously reported consolidated results of operations, financial condition, or cash flows. The following tables summarize selected financial information of our operations by segment and reconciles segment profit to consolidated earnings (loss) before income taxes for the periods presented ($000):
| Three Months Ended September 30, |
| 2024 |  | 2023 |  |
Segment revenue |  |  |  |  |
Networking | $ | 762,872 |  |  | $ | 472,849 |  |  |
Materials | 237,427 |  |  | 244,640 |  |  |
Lasers | 347,836 |  |  | 335,594 |  |  |
Total segment revenue | 1,348,135 |  |  | 1,053,083 |  |  |
Intersegment revenue |  |  |  |  |
Networking | 14,427 |  |  | 12,887 |  |  |
Materials | 132,168 |  |  | 87,742 |  |  |
Lasers | 1,564 |  |  | 639 |  |  |
Unallocated | (148,159) |  |  | (101,268) |  |  |
Total intersegment revenue | — |  |  | — |  |  |
Segment profit |  |  |  |  |
Networking | 140,276 |  |  | 67,193 |  |  |
Materials | 96,647 |  |  | 57,815 |  |  |
Lasers | 68,785 |  |  | 52,900 |  |  |
Total segment profit | 305,708 |  |  | 177,908 |  |  |
Unallocated Corporate items: |  |  |  |  |
Corporate and centralized function costs (1) | (73,102) |  |  | (45,535) |  |  |
Share-based compensation | (35,478) |  |  | (44,524) |  |  |
Restructuring costs (2) | (24,364) |  |  | (3,018) |  |  |
Integration, site consolidated and other costs (3) | (25,702) |  |  | (33,074) |  |  |
Amortization of intangibles | (71,862) |  |  | (72,662) |  |  |
Start-up costs | — |  |  | (403) |  |  |
Interest expense | (66,644) |  |  | (73,258) |  |  |
Other (income) expense, net | 10,749 |  |  | 6,269 |  |  |
Earnings (loss) before income taxes | $ | 19,303 |  |  | $ | (88,297) |  |  |
Expenditures for property, plant, and equipment |  |  |  |  |
Networking | $ | 48,686 |  |  | $ | 17,493 |  |  |
Materials | 33,796 |  |  | 40,512 |  |  |
Lasers | 9,502 |  |  | 4,192 |  |  |
Total expenditures for property, plant, and equipment | $ | 91,984 |  |  | $ | 62,197 |  |  |
Segment assets and reconciliation to total assets |  |  |  |  |
Networking | $ | 3,495,881 |  |  | $ | 3,200,796 |  |  |
Materials | 2,911,978 |  |  | 2,027,164 |  |  |
Lasers | 7,536,963 |  |  | 7,569,884 |  |  |
Corporate and shared services | 754,478 |  |  | 723,454 |  |  |
Total assets | $ | 14,699,300 |  |  | $ | 13,521,298 |  |  |
(1)We do not allocate corporate and centralized function costs that are not directly attributable to our operating segments. (2)See Note 17. Restructuring Plan for further information. (3)Integration and site consolidation costs in the three months ended September 30, 2024 include $12 million consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, $9 million of manufacturing inefficiencies, employee severance and retention costs and duplicative labor related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan, $4 million charges for products that are end-of-life and $1 million of severance related to the retirement of executives. Integration and site consolidation costs in the three months ended September 30, 2023 include $17 million of manufacturing inefficiencies, employee severance and retention costs and duplicative labor related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan, $7 million consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, $7 million charges for products that are end-of-life, including inventory, production equipment to produce those products and $2 million of severance related to the retirement of executives.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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